In this article, Boeing announced on Thursday that it anticipates a loss of approximately $4 billion in the fourth quarter, further complicating the challenges faced by the company. The year 2024 began with a midair incident and concluded with a significant labor strike and staff reductions.
For the fourth quarter, the company projects a loss of $5.46 per share and expects revenue to reach $15.2 billion, falling short of analysts’ forecasts. Boeing estimates a cash burn of $3.5 billion during the quarter and raised over $20 billion to enhance liquidity amidst its ongoing crises.
Boeing has not recorded an annual profit since 2018 and foresees a $1.1 billion charge on its 777X and 767 programs due to the strike and new contract agreements. CEO Kelly Ortberg stated, “Although we face near-term challenges, we took important steps to stabilize our business during the quarter including reaching an agreement with our IAM-represented teammates and conducting a successful capital raise to improve our balance sheet.”
Following a midair incident in January 2024, Boeing has struggled to recover, triggering a new safety crisis after the fallout from two fatal crashes in 2018 and 2019. The incident led to increased federal oversight and a slowdown in new plane deliveries. A nearly two-month machinists strike that commenced in September halted most commercial aircraft production, with workers in the Puget Sound area securing a new contract in November.
The commercial airplane unit revenue is expected to be around $4.8 billion, with a negative operating margin of nearly 44%. Boeing’s challenges extend to its defense unit, with anticipated pretax charges of $1.7 billion on the KC-46A tanker, the long-delayed 747s designated as the new Air Force One aircraft, and its space programs.
